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In this issue of The Secured Lender , we delve into topics that challenge conventional wisdom in our industry and inspire innovative thinking. As we navigate through the complexities of our ever-evolving world, these pieces offer insight and foresight, encouraging us to envision new possibilities.
From groundbreaking technological advancements in collateral intelligence to transformative leadership strategies in alternative debt and secured finance, each article is a testament to the power of forward-thinking. They invite us to question the status quo, embrace change, and lead with purpose. As you read this issue, I hope you find not only knowledge, but also the inspiration to drive meaningful change in your own sphere of influence.
This issue is the perfect precursor to SFNet’s Annual Convention, held November 11–13, 2025, in Los Angeles. This year’s agenda focuses on “Rising to the Challenge” and features powerful panels like “Views from the Top” featuring heads of Bank ABL, Factoring and Independent ABL platforms, “Global Finance in Turbulent Times”, and “Practical Strategies for Monitoring and Mitigating Tariff Risk”. Keynotes include economist Jerry Nickelsburg, Admiral James Stavridis, and LA28 Olympics CFO Karen Sturges. This gathering is your chance to connect, collaborate, and lead the future of finance. Register now at sfnet.com.
The New Collateral Frontier: How Secured Finance Is Winning Over Unlikely Industries by Rob Gorin of Hilco Global on page 8, explores the transformative shift in secured finance, highlighting how industries like technology, healthcare, and media are leveraging innovative collateral and data-driven monitoring to secure funding. With rising interest rates and liquidity pressures, discover why these sectors are turning to secured finance and how lenders are adapting to meet their needs.
On page 12, Andrew Barone of Rosenthal Capital Group analyzes Why Sponsor-Backed CPG Brands are Turning to Alternative Debt More than Ever Before . In today’s uncertain economic climate, traditional lenders are tightening their standards, leaving high-growth consumer brands searching for flexible capital solutions. This article explores how alternative debt—asset-based lending, factoring, and purchase order financing—is emerging as a powerful complement to equity. From funding major retail orders to supporting vertical
integration, discover why private credit is becoming a go-to strategy for consumer packaged goods companies seeking stability, growth, and smarter capital structures.
Asset-based lending is at a turning point. Manual processes, outdated tools, and reactive workflows are holding lenders back. But a smarter, faster future is emerging. On page 16, Jeff Carlson of LoanWatch explores how collateral intelligence—powered by automation, structured data, and AI—is transforming ABL operations, reducing risk, and unlocking real-time insight.
RICHARD D. GUMBRECHT SFNet Chief Executive Officer
In Navigating Skilled Nursing Finance in 2025: A Test of Expertise on page 20, Tim Peters of eCapital explains why 2025 marks a turning point for skilled nursing facilities in the U.S. This article reveals how shifting demographics, new reimbursement challenges, and operational pressures are transforming the industry’s financial landscape.
Don’t miss the interview with retiring SFNet president, Rob Meyers, on page 24, in which he reflects on his year as SFNet president, highlighting member engagement, successful events, and the growth of the secured finance ecosystem.
As we rise to face the challenges ahead, there’s no better setting to exchange ideas, deepen industry relationships, and celebrate the spirit of secured finance than SFNet’s Annual Convention. Your voice and participation are essential—I hope to see you there.
TABLE OF CONTENTS. OCTOBER 2025 VOL. 81 ISSUE 7
THE NEW COLLATERAL FRONTIER P8
This article explores the transformative shift in secured finance, highlighting how industries like technology, healthcare, and media are leveraging innovative collateral and data-driven monitoring to secure funding. With rising interest rates and liquidity pressures, discover why these sectors are turning to secured finance and how lenders are adapting to meet their needs. 8 BY
ROB GORIN
FEATURE STORIES
Emerging Industries: Why Sponsor-Backed CPG Brands Are Turning To Alternative Debt More Than Ever Before
In today’s uncertain economic climate, traditional lenders are tightening their standards, leaving high-growth consumer brands searching for flexible capital solutions. This article explores how alternative debt—asset-based lending, factoring, and purchase order financing—is emerging as a powerful complement to equity. 12 BY
ANDREW BARONE
EMERGING INDUSTRIES: WHY SPONSOR-BACKED CPG BRANDS ARE TURNING TO ALTERNATIVE DEBT MORE THAN EVER BEFORE P.12
Asset-based lending is at a turning point. Manual processes, outdated tools, and reactive work flows are holding lenders back. But a smarter, faster future is emerging. This article explores how collateral intelligence—powered by automation, structured data, and AI, is transforming ABL operations. 16
BY JEFF CARLSON
Discover why 2025 marks a turning point for skilled nursing facilities in the U.S. This article reveals how shifting demographics, new reimbursement challenges, and operational pressures are transforming the industry’s financial landscape. 20
BY TIM PETERS
Rob Meyers, president of Republic Business Credit, reflects on his year as SFNet president, highlighting member engagement, successful events, and the growth of the secured finance ecosystem. 24
BY MICHELE OCEJO
ABL TRENDS
SPONSORED CONTENT
Kyle Shonak uncovers the key factors that prompted Gordon’s groundbreaking strategies and highlights how these innovations can empower lenders to thrive in a competitive landscape. Get ready to transform your lending approach with insights from Gordon’s success story. 27
BY KYLE SHONAK
This column highlights the hard work and dedication of SFNet’s Committee volunteers. Here we speak with Kurt Marsden, group head, Wells Fargo Capital Finance, and chair of SFNet’s Convention Planning Committee. SFNet’s Annual Convention will be held November 11-13 in Los Angeles, CA. 29
BY EILEEN WUBBE
TOUCHING BASE 3
NETWORK NOTES 6
The Secured Finance Network is the trade group for the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations.
The objectives of the Association are to provide, through discussion and publication, a forum for the consideration of inter- and intra-industry ideas and opportunities; to make available current information on legislation and court decisions relating to asset-based financial services; to improve legal and operational procedures employed by the industry; to furnish to the general public information on the function and significance of the industry in the credit structure of the country; to encourage the Association’s members, and their personnel, in the performance of their social and community responsibilities; and to promote, through education, the sound development of asset-based financial services.
The opinions and views expressed by The Secured Lender’s contributing editors and authors are their own and do not necessarily express the magazine’s viewpoint or position. Reprinting of any material is prohibited without the express written permission of The Secured Lender
The Secured Lender, magazine of the asset-based financial services industry (ISSN 0888-255X), is published 6 times per year (Jan/Feb, March, June, July/Aug, Sept and Nov) $65 per year non-member rate, and $105 for two years non-member rate. SFNet members are complimentary.
Secured Finance Network
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Periodicals postage paid at New York, NY, and at additional mailing offices. Postmaster, send address changes to The Secured Lender, c/o Secured Finance Network, 370 Seventh Avenue, Suite 1801, New York, NY 10001
Editorial Staff
Michele Ocejo Editor-in-Chief and SFNet Communications Director mocejo@sfnet.com
Eileen Wubbe Senior Editor ewubbe@sfnet.com
Aydan Savaser
Art Director asavaser@sfnet.com
Advertising Contact: James Kravitz
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T: 646-839-6080 jkravitz@sfnet.com
Choate Expands Its Finance and Restructuring Team with Addition of Michael Comerford
Michael E. Comerford has joined Choate as a partner in the Firm’s nationally recognized Finance and Restructuring practice. Comerford will represent a broad range of clients including financial institutions, private credit lenders, noteholders, private equity sponsors, insurance companies, and Boards of Directors in a range of complex restructurings and bankruptcies throughout the United States and abroad.
Announces Senior Executive Leadership Changes
CIBC announced senior leadership appointments to its Group Executive Leadership Team that will position the bank for the future and further accelerate the execution of its clientfocused strategy as Harry Culham assumes the role of resident and CEO, November 1, 2025.
Christian Exshaw will be appointed senior executive vice-president and group head, Capital Markets.
Kevin Li will be appointed senior executive vice president and group head, U.S. Region; President and CEO, CIBC Bank USA.
Christina Kramer will be appointed senior executive vice president and chief administrative officer (CAO), CIBC.
Hratch Panossian , senior executive vice president and group head, Personal and Business Banking, continues in his current role and will expand his mandate to include contact centres and client marketing.
Susan Rimmer , senior executive vice president and group head, Commercial Banking and Wealth Management, continues in her current role leading this strategic business unit in Canada and will add oversight of CIBC Caribbean.
Amy South will be appointed executive vice president, Office of the CEO and chief of staff.
Stephen Scholtz will be appointed
global chief legal officer.
Frank Guse , senior executive vice president and chief risk officer
Robert Sedran , senior executive vice president and chief financial officer and Enterprise Strategy
Sandy Sharman , senior executive vice president and group head, People, Culture and Brand
In addition to today’s appointments, the following leaders will be retiring from CIBC:
Shawn Beber , senior executive vice president and group head, U.S. region; president and CEO, CIBC Bank USA, will retire from the bank after 23 years on July 1, 2026, and will be appointed as special advisor on November 1, 2025 to ensure a smooth leadership transition.
Kikelomo Lawal , executive vice president and chief legal officer, will retire from CIBC.
Franklin Capital Expands Leadership Team with Appointment of Steven Damon as Vice President of Operations Franklin Capital is pleased to announce the addition of Steven Damon as vice president of operations. Damon brings over 26 years of experience in assetbased lending, factoring, and audit, with a proven track record of managing $20 million-plus portfolios without losses and underwriting facilities up to $15 million.
Brian Trudgen Joins Mayer Brown in Chicago, Further Enhancing Firm’s Market Leading Leveraged Finance and Private Capital Capabilities
Mayer Brown announced that Brian Trudgen has joined the Chicago office as a partner in its Global Leveraged Finance and Private Capital Group.
Mitsubishi HC Capital America
Appoints Wolfgang Arbaczewski to Lead Specialty Finance Credit Amid Strategic Expansion
Mitsubishi HC Capital America is announcing the strategic hiring of three seasoned credit leaders to support its continued growth and diversification
across growing and specialized markets.
Leading this initiative is Wolfgang Arbaczewski, named senior vice president, chief credit officer - Specialty Finance.
In addition, Mitsubishi HC Capital America is also pleased to welcome two additional accomplished professionals to its credit team: Justin Anderson, vice president, bringing over 15 years of experience in commercial and equipment finance with a focus in quick service restaurants and Kiu Wong, vice president, joins the team with 15+ years of experience in energy and infrastructure project finance.
Monroe Capital LLC Hires Todd Davis as Director on Direct Originations Team
Todd Davis will be responsible for originating new business opportunities within the Northeast region and will be based in Monroe Capital’s New York office.
Pathward Appoints Charles Ingram as Executive Vice President and Chief Information and Operations Officer
Pathward Financial, Inc. announced that Charles Ingram has been appointed executive vice president and chief information and operations officer in recognition of his leadership in aligning technology, product and operations to drive efficiency, resilience and innovation across the company.
Provident Bank Names Michael A. Perito SVP, Head of Corporate Strategy
In this newly created role, Michael A. Perito will be responsible for overseeing the development and execution of the bank’s overall strategic plan, identifying growth opportunities, and ensuring the bank’s strategy aligns with its goals within the regional banking landscape.
Rosenthal Capital Group (RCG) Hires
Jeff Biesiada as Senior Business Development Officer for Equipment Finance Division
With over 20 years of experience in the commercial finance industry, Jeff Biesiada joins RCG with extensive background in equipment finance & leasing and will be responsible for developing new business with commercial equipment vendors and dealers, private equity firms, ABL partners and restructuring shareholders.
Sallyport Commercial Finance Welcomes Four New Hires
Sallyport Commercial Finance has welcomed four new team members. Melissa McGuire has joined as vice president, business development, based in Florida. Camyren Grays has joined as a collateral analyst, based in Houston, TX. Jennifer Lawrence joined as an account executive, based in Florida. Lorna Williamson has joined as a project executive, based in Toronto.
Arde Sahraeean Joins SLR Business Credit
Arde Sahraeean joined SLR Business Credit as vice president, account executive. With over 15 years of industry experience, Sahraeean brings a wealth of knowledge in Portfolio Management and Underwriting.
SLR Business Credit Announces Addition of Gino Clark to Expand its Traditional Factoring Business
SLR Business Credit, in conjunction with its affiliate SLR Digital Finance, has announced that Gino Clark has joined as senior vice president/managing director to expand its traditional factoring business.
Texas Capital Adds a Five-Person Healthcare Banking Team
In June, Texas Capital added a fiveperson healthcare banking team with deep expertise across ABL, Cashflow and Real Estate—professionals who have
spent the last 15 years building and leading together across top institutions. The team enhances both Texas Capital’s Corporate Banking and ABL capabilities and their move underscores confidence in Texas Capital’s transformation and strategy. It also reflects their desire to keep their team intact.
Rhonda Noell is managing director, Healthcare at Texas Capital, where she focuses on healthcare lending in cashflow, asset-based lending and real estate.
Rick McMahon is executive director, Healthcare at Texas Capital.
Mohammad (Moe) Hassan is executive director, Healthcare at Texas Capital.
Luis M. Meade is director, Healthcare at Texas Capital.
Evan Purcell is director, Healthcare at Texas Capital.
US Capital Global Expands Strategic Finance Team with Matthew M. Jensen as Vice President in Los Angeles and Newport Beach
US Capital Global appointed Matthew M. Jensen as vice president at the group’s Los Angeles and Newport Beach offices.
BY ROB GORIN
This article explores the transformative shift in secured nance, highlighting how industries like technology, healthcare, and media are leveraging innovative collateral and data-driven monitoring to secure funding. With rising interest rates and liquidity pressures, discover why these sectors are turning to secured nance and how lenders are adapting to meet their needs.
For decades, secured finance was the tool of choice for ‘old economy’ companies— manufacturers, distributors, and asset-heavy businesses. Meanwhile, newer industries such as SaaS, healthcare, or media relied on venture capital, government programs, or studio advances. But a tectonic shift is underway: technology firms are pledging recurring revenues, healthcare providers are borrowing against receivables, and entertainment companies are monetizing libraries.
Why now? Rising interest rates, investor discipline, and liquidity pressures have converged with a more innovative secured finance industry. Lenders have redefined what constitutes collateral, implemented data-driven monitoring, and engaged sector experts who understand industry-specific cash flows. This article explores why industries are turning to secured finance, how lenders won them over, the lessons learned, and where the next frontier lies.
Across industries as different as software, clean energy, and media, the reasons for turning to secured finance share a common DNA. At the forefront is capital scarcity. The era of cheap, abundant money is over. Rising interest rates and more selective venture capital have narrowed the flow of equity and unsecured debt. Companies that once heavily leaned on venture funding or government subsidies now find those channels constrained, forcing them to seek more reliable, nondilutive capital. Layered on top of this scarcity are liquidity pressures. Payment cycles are stretching as large customers hoard their own cash, inventory costs have risen sharply in the wake of supply chain volatility, and many businesses—particularly in capital-intensive sectors like healthcare or renewables—face large upfront investments that cannot wait for slow reimbursements or equity raises. Finally, many of these sectors have matured in ways that make them newly attractive to secured lenders. SaaS companies now boast predictable annual recurring revenues, renewable energy projects have long-term purchase agreements with creditworthy counterparties, and media firms have digital libraries that generate recurring and measurable royalties. These are not speculative bets, but tangible, auditable cash flows that can be valued, monitored, and lent against. In effect, the macroeconomic environment has compelled companies to seek new sources of capital, just as their business models have evolved to produce the kind of contracted and verifiable revenue streams that lenders prize. The result is a convergence: industries under pressure meeting an industry that has adapted to embrace them.
Secured lenders have not expanded their reach by standing still; they have transformed the business of asset-based lending. The first major change has been collateral innovation. For decades, lenders clung to the comfort of tangible assets like factories, machines, or inventory. But as the economy
shifted toward intangibles, that approach left vast new industries untapped. The breakthrough came when lenders recognized that contracted annual recurring revenue, royalties, power purchase agreements, sponsorship deals, and even receivables from digital platforms could function just as reliably as traditional collateral. This willingness to redefine what counts as “bankable” opened the door to SaaS, clean energy, and media companies that previously relied almost entirely on equity or subsidies.
The second shift was in monitoring practices. Quarterly borrowing-base audits and manual spreadsheets were never designed for fast-moving businesses with dynamic revenue streams. To serve these new borrowers and adjust to the ever-increasing speed of business, lenders embraced digital monitoring, plugging directly into billing systems, ERPs, and marketplaces through dashboards and protocols that allow diverse software applications to communicate. This gave lenders real-time visibility into performance and credit quality while giving borrowers immediate access to liquidity, transforming secured finance from a backward-looking process into a live partnership.
Finally, lenders built sector fluency. Winning the trust of a SaaS founder or a hospital CFO requires speaking their language. Underwriters now assess metrics like net retention, reimbursement cycles, or streaming viewership with the same comfort they once had with inventory turnover or fixed asset valuations. This shift signals credibility and builds confidence, convincing borrowers that secured finance is far from a onesize-fits-all solution, but rather a tailored fit for their specific business.
Together, these adaptations reframed secured finance from a rigid, last-resort option into a flexible, growth-friendly capital solution—one that today’s innovative industries not only tolerate, but actively seek out.
The wave of new entrants into secured finance has forced the industry to confront some uncomfortable, but valuable, lessons. Chief among them is that data only matters when it translates into enforceable cash flows. Flashy user metrics or transaction counts are meaningless without underlying contracts and transparent performance data that prove money
can and will be collected. The second lesson is the danger of concentration risk. Even a seemingly strong business model can collapse if it relies too heavily on a single customer, digital platform, or contract, and lenders must reflect this in advance rates and structures. A third realization is that borrower experience is a decisive factor in winning and retaining clients. Many of these industries are encountering secured finance for the first time, and what they value most is not the cheapest spread, but the reliability of funding, the clarity of terms, and the speed of execution. Finally, the industry has learned that legal precision is not a formality, but the backbone of collateral value. Without airtight definitions, audit rights, perfected liens, and enforceable structures, even the most promising exotic collateral—royalties, platform receivables, intellectual property—can quickly lose its worth in a workout. These lessons underscore a larger truth: for secured finance to succeed in new industries, it must combine creativity with discipline, pairing innovation in collateral with rigor in underwriting, service, and legal execution.
To cement its position, the secured finance industry must double down on the very innovations that opened the door to these new markets. Investing in integrations—direct connections to billing systems, ERPs, and digital platforms— ensures monitoring is seamless and real-time, giving borrowers confidence that their availability is accurate and lenders assurance that their risk is under control. Standardizing definitions of newer collateral classes, such as annual recurring revenue (ARR) from subscription-based business, royalties, and power purchase agreements, is equally important; without common frameworks, every transaction risks becoming a costly one-off negotiation, slowing adoption and undermining trust. Lending facilities also need to scale programmatically, automatically expanding in step with a borrower’s performance so that high-growth companies aren’t forced into repeated renegotiations just as momentum builds. Specialization matters too: lenders with dedicated sector teams demonstrate credibility and insight, while generalists risk appearing out of touch with industry-specific realities. Finally, education is critical—most of these borrowers are new to secured finance, and onboarding that demystifies borrowing bases, reserves, and covenants builds confidence, loyalty, and repeat business. Together, these strategies aren’t just operational improvements; they are the foundation for making secured finance the go-to solution for the next generation of industries.
Looking ahead, secured finance has a unique opportunity to expand into sectors defined by contracted, recurring, and verifiable cash flows—particularly those strained by rising capital costs. AI and data infrastructure are one such market.
1 2 3 4 5
Innovative Collateral: Tech, healthcare, and media use new collateral like recurring revenues and digital receivables.
Capital Scarcity: High interest rates and selective venture capital push companies to seek non-dilutive capital.
Data-Driven Monitoring: Lenders use digital tools for real-time performance and credit monitoring.
Sector Fluency: Lenders specialize in industries, assessing specific metrics.
Lessons Learned: Importance of enforceable cash flows, avoiding concentration risk, and borrower experience.
Enterprises are signing multi-year licenses for AI models, compute access (such as renting processing power when needed), and support services that resemble the predictable ARR streams lenders have already grown comfortable financing in SaaS. The capital needs here are enormous—data centers, chips, and energy-intensive computing services all demand heavy up-front investment. By structuring loans around contracted revenues, secured lenders can provide growth capital without forcing borrowers to dilute ownership in a fiercely competitive space.
B2B marketplaces also represent a compelling target. Platforms facilitating trade across fragmented supply chains generate diversified, high-frequency transaction fees and often manage escrow balances. This creates a pool of receivables and cash flows that are both trackable and diversified across thousands of sellers and buyers. Secured finance can bring liquidity to marketplace operators and even to sellers themselves, with collateral rooted in escrowed or platformverified receivables. The opportunity is amplified by the global shift toward digitized trade (such as streaming services), where traditional banks still hesitate due to a lack of familiarity.
In EV charging and energy distribution, growth is capitalintensive: networks must build out charging stations and solar or storage assets before utilization ramps up. Yet, these businesses often sign site-host agreements and usage contracts that provide them with contracted, predictable cash inflows. Lenders who recognize these as financeable collateral will unlock a massive growth market while aligning with the global transition to clean energy. By linking loan structures to usage data and contractual obligations, secured finance can mitigate risk and open a powerful new green lending vertical.
Finally, the creator and developer economies offer another promising avenue. Whether it’s recurring ad-share revenues on YouTube, subscription payments on Patreon, or in-app purchase royalties in gaming, many creators now enjoy steady, platform-verified cash flows. While traditional banks dismiss these streams as too volatile, secured lenders with strong
data integrations can evaluate historical payout stability and concentration risk to unlock non-dilutive working capital. In a rapidly expanding digital economy where creators are often capital-constrained, this is a clear frontier for growth. Taken together, these sectors highlight the same core truth: if the cash flow is contracted, attributable, stable, and harvestable, then it can be bankable. The task for secured finance is to refine the tools, frameworks, and sector expertise to translate these modern revenue models into reliable collateral—and in doing so, position itself at the center of tomorrow’s economy.
Conclusion
What began as an industry born from factories and forklifts has reinvented itself for a data-driven economy. By embracing new collateral, modern monitoring, and borrower-centric practices, secured finance has earned its seat at the growth table in sectors once thought of as offlimits.
global sales of approximately $60mm. Prior to that, he was Interim COO of a $100mm, globally recognized, family-owned apparel and fashion company.
Mr. Gorin has both undergraduate and graduate degrees from The Wharton School at the University of Pennsylvania.
Finally, the creator and developer economies offer another promising avenue. Whether it’s recurring ad-share revenues on YouTube, subscription payments on Patreon, or in-app purchase royalties in gaming, many creators now enjoy steady, platform-verified cash flows.
The lesson is clear: secured finance is no longer just about what you can touch—it’s about what you can measure, monitor, and monetize. And that opens the door to industries that not long ago wouldn’t have considered it at all.
Robert Gorin is executive director – Restructuring Getzler Henrich at Hilco Global and a highly accomplished leader with an outstanding record of innovative growth strategies to achieve accelerated sales and profit. He brings more than 30 years of client-centric focus to business strategy and operations through his work in corporate turnarounds, process design and improvement, corporate mergers and acquisitions, and management consulting. Robert recently served as COO for a $220 million consumer products company overseeing finance, order processing, logistics, customer service, IT, human resources, forecasting, and strategic planning. He was also appointed CRO of an international furniture manufacturer with manufacturing in Costa Rica and
BY ANDREW BARONE
In today’s uncertain economic climate, traditional lenders are tightening their standards, leaving highgrowth consumer brands searching for flexible capital solutions. This article explores how alternative debt— asset-based lending, factoring, and purchase order financing—is emerging as a powerful complement to equity. From funding major retail orders to supporting vertical integration, discover why private credit is becoming a go-to strategy for consumer packaged goods companies seeking stability, growth, and smarter capital structures.
Given the immense macroeconomic uncertainty in the market, conventional lending sources have understandably been tightening their underwriting and lending parameters. This shift has led to a noticeable uptick in availability of capital in the private credit market, especially among consumer-focused brands. Longpopular with consumer packaged goods (CPG) businesses, sponsor-backed financing is now being paired more and more with alternative debt to offer growing businesses a powerful solution that drives growth and provides much-needed stability over time. Alternative debt options like asset-based lending, factoring and purchase-order financing allow sponsors and their CPG brands to tailor a more flexible capital structure that balances the need for working capital without excessively diluting ownership.
Two sectors in particular – food & beverage and beauty –have benefited from an influx of equity dollars over the years. This trend does not seem to be slowing down anytime soon, largely because many of these brands have seen successful exits over time and conglomerates are always looking to add insurgent brands to their portfolios once they reach a certain scale, distribution and reach. With more equity dollars flowing to smaller CPG brands, the larger conglomerates – L’Oreal, Pepsi and Mondelez just to name a few – find it difficult to invest capital in their own R&D. For these larger brands, it’s often easier to pay up for a smaller brand that has proven their worth in the market and monetize that brand purchase over time, while utilizing their own overhead and production to cut down costs and improve margins. Aside from equity-tofund growth, other expenses like hiring, equipment and other unexpected costs of doing business – from slotting fees to marketing allowances – require accessible and steady access to capital to keep the business and day-to-day operations running smoothly. Debt can be a great way for a business to free up cash flow that may otherwise be tied up on their balance sheet due to their working capital cycle.
In the current climate, alternative debt is an especially appealing option because CPG brands are not limited by their balance sheet borrowing power. While traditional lenders may tend to limit the amount of debt a brand can access or, in some cases, even pass on the opportunity to finance a highgrowth CPG brand, alternative lenders are often interested in these brands because they are able to get in the door at an earlier stage in the company’s growth trajectory. Challenges like losses, customer concentrations, inventory borrowing relative to receivable borrowing and other factors might turn off a more traditional lender, but to an alternative lender, the opportunity to enter a specific category or develop a partnership with an equity sponsor is appealing.
While many CPG brands have considered asset-based lending and factoring as viable alternative solutions, others are
becoming more interested in other products, including purchase-order financing, which replaces the need for equity to produce an order from a creditworthy retailer. A great example of this would be for an initial load-in order into a big box retailer, department store or specialty retailer like Costco, Target or Ulta. Perhaps there is a $3-million order for a product to launch nationally, but current terms with the brand’s co-packers are not long enough to be able to have the product shipped on time and invoiced to borrow against receivables to pay the co-packer what it is owed. In fact, domestic co-packers often require smaller brands to pay in full prior to releasing goods on a truck. This is precisely where purchase-order financing can help.
Additionally, we’re also seeing an uptick in cases of larger CPG brands needing to purchase expensive equipment up front to support the company’s vertical supply chain integration efforts. In these cases, being the brand and manufacturer has tremendous upsides by way of improved margins as well as dedicated assembly lines, rather than sharing production with other brands at a co-packer. But manufacturing equipment is expensive, so having the right financial solution in place to cover those costs is critical.
While debt has, at times, been a dirty word in some entrepreneurial circles, both brands and equity firms are now viewing alternative debt solutions as a true complementary partner on the balance sheet. Consumer-focused alternative debt firms are familiar with the profile of these brands and understand their pain points. So, rather than going to their LPs to invest to support a large purchase order, there is growing interest now in having a reliable and flexible debt partner on board ready to tackle these capital requirements in a timely fashion.
Many consumer investors would rather keep the cap table smaller and the founders happy with hopes of a larger overall exit for all by funding the working capital needs of their portfolio brands through alternative debt. Alternative debt options like asset-based lending and purchase order financing enable sponsors and CPG brands to tailor a capital structure that meets their specific needs, balancing the need for capital without excessive dilution of ownership. Asset-based lending and other alternative funding structures, when combined with equity financing can offer a powerful solution for driving growth
and operational improvements for CPG businesses, with the ultimate goal of delivering increased financial stability along with investor returns. Not all alternative lenders are created equal, however. Finding the right lender that is nimble and able to creatively structure a deal is critical and can be beneficial to both clients and sponsors alike.
When disruptions and economic uncertainties rattle the markets, alternative debt solutions should be one of the first things businesses – especially high-growth CPG brands – look toward when seeking working capital to maintain their day-today operations and support future growth.
As senior vice president and director of business development for CPG+, Andrew Barone is responsible for expanding Rosenthal Capital Group’s (RCG) newest division serving highgrowth directto-consumer and emerging brands. Andrew has been focused on business development efforts across the firm’s factoring, assetbased lending, and purchase order financing divisions since joining Rosenthal in 2016. Prior to that, Andrew served in various roles in equity finance and U.S. credit sales at Société Générale. He holds a Bachelor of Business Administration degree in Business Management from Adelphi University.
1 2 3 4 5
Traditional lenders are tightening standards, making private credit and alternative debt crucial financing sources for consumer brands.
Alternative debt helps CPG brands fund growth and operations flexibly without diluting ownership.
Purchase-order financing bridges cash flow gaps for large retail orders.
Debt supports vertical integration by financing costly equipment and boosting margins.
Alternative debt is now seen as a strategic partner to equity, driving stability and growth.
Alternative debt options like asset-based lending and purchase order financing enable sponsors and CPG brands to tailor a capital structure that meets their specific needs, balancing the need for capital without excessive dilution of ownership.
BY JEFF CARLSON
Asset-based lending is at a turning point. Manual processes, outdated tools, and reactive work ows are holding lenders back. But a smarter, faster future is emerging. This article explores how collateral intelligence—powered by automation, structured data, and AI—is transforming ABL operations, reducing risk, and unlocking real-time insight. Discover how lenders can shift from inef ciency to intelligence.
Ask operations leaders, field examiners, or credit analysts, and the sentiment is consistent: the process of managing collateral in ABL, though essential, feels broken. It is slow. It is repetitive. And it pulls experienced professionals away from higher-value work.
Across the industry, practitioners report that highly skilled professionals are spending their time wrestling spreadsheets, validating borrower-submitted numbers, and retracing data anomalies that should have been caught earlier. Analysts describe late nights preparing reports that may be outdated by the time they are submitted. Managers acknowledge that the process creates risk, but note that legacy tools constrain options.
There is a shared desire to move from firefighting to oversight, from inefficiency to insight, and from repetition to responsiveness.
Introducing Collateral Intelligence
A workable model for collateral intelligence is emerging, enabled by three capabilities:
1. Automated collateral assessment and ineligibles calculation
2. Centralized, structured data at the invoice and item level
3. AI-driven agents that support smarter, faster decisionmaking
Together, these capabilities create a foundation for a smarter, more scalable ABL model, one that addresses lender needs and prepares lenders for the future.
Automated Collateral Assessment: The Foundation
Reduction in manual errors and reconciliation efforts
What was once a timeconsuming, borrower-led task becomes a shared, auditable, and transparent process that accelerates approvals and improves confidence in every number.
Centralized Data: From Byproduct to Strategic Asset
JEFF CARLSON LoanWatch
As automated assessments generate results, they also produce something incredibly powerful: a centralized database of invoice-level and item-level collateral data. This data repository is not just a convenience; it is a material improvement for risk management and workflow control.
These queries would typically take hours to research and compile. With an AI assistant, they are answered in seconds, bringing speed, clarity, and agility to every role on the lending team.
At the core of collateral intelligence is precision: identifying eligible assets accurately, applying complex loan terms, and calculating the borrowing base. By automating the assessment of ineligibles and generating borrowing base certificates through standardized logic, lenders gain:
Immediate clarity on collateral value
Consistent application of eligibility rules
It enables trend analysis and risk monitoring over time It connects disparate data sources into a consolidated dataset of record
It supports portfoliolevel reporting, benchmarking, and compliance reviews
With clean, structured, and current data on hand, lenders unlock deeper insights asking borrowers for another spreadsheet.
AI as a Strategic Partner
AI is reshaping assetbased lending operations: unlocking insights, accelerating workflows, and proactively managing risk in ways previously unattainable.
Operationally, AI can take over tedious, time-intensive tasks that have historically burdened analysts and operations teams: parsing reports, grouping customers and vendors, validating ineligibles, calculating exceptions, and preparing exam summaries. With AI, these become automated and audit-ready.
But the true power of AI lies in its ability to deliver continuous, near real-time insight into a borrower’s financial position:
Evaluate financial viability through near real-time analysis of AR, AP, and inventory data
Identify trends in customer behavior, concentration, and risk tied to open receivables
Highlight drivers of ineligibles, helping both borrower and lender pinpoint operational opportunities to unlock availability
Surface issues in inventory (such as aging, obsolescence, or valuation) that may impact collateral quality
Proactively alert the appropriate users when thresholds are crossed or risk patterns emerge.
This transition marks a fundamental shift from reactive reviews to proactive engagement. When fully realized, AI is more than a supportive tool; it functions as an intelligent, adaptive layer across the ABL lifecycle, capable of identifying threats and opportunities in near real time and guiding highimpact decisions at scale.
A practical first step toward this future can begin with the deployment of an AI assistant, an agent trained on ABL logic and borrower context, capable of responding to naturallanguage questions:
“What’s driving the change in availability this cycle?”
“Which customers represent more than 20% of AR and are past due?”
“What’s the average inventory turnover ratio for Borrower X over the last three months?”
These queries would typically take hours to research and compile. With an AI assistant, they are answered in seconds, bringing speed, clarity, and agility to every role on the lending team.
Several forces are driving this shift
Increasing portfolio complexity
Increased competition and rising borrower expectations for digital interactions
Heightened regulatory scrutiny and audit demands
Recent advancements in AI have made sophisticated data analysis and intelligent recommendations not only possible, but practical and accessible for ABL teams today
Lenders need a solution that provides speed, visibility, and control, all while reducing operational burden. Collateral intelligence answers that call.
The transition is often easier than expected. Most lenders are already receiving borrower AR, AP, and inventory data. With
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Legacy ABL processes are inefficient, consuming valuable analyst time with manual tasks like spreadsheet management and outdated reporting, increasing risk and reducing strategic focus.
Collateral intelligence transforms ABL through automation, centralized data, and AI—delivering faster decisions, fewer errors, and greater confidence in collateral assessments.
Centralized, invoice-level data enables smarter risk management, trend analysis, and real-time visibility—turning collateral data into a strategic asset rather than a byproduct.
AI becomes a strategic partner by automating tedious workflows and providing real-time insights into borrower risk, availability drivers, and operational trends.
The shift to collateral intelligence is timely, driven by portfolio complexity, regulatory pressure, and AI advancements—making scalable, efficient ABL operations both possible and practical today.
the right platform, that data can be transformed into structured collateral intelligence with minimal disruption.
Collateral intelligence is no longer a distant concept; it is a practical next step. By combining accurate, automated assessments with near real-time data and AI-powered insights, lenders are not just solving for efficiency; they are building smarter, safer, and more agile credit operations.
Most lenders already receive AR, AP, and inventory files; the gap is processing them programmatically and consistently. The professionals who have lived the burden of legacy workflows are ready for something better.
As a co-founder and CEO of LoanWatch, Jeff Carlson is a seasoned leader and serial entrepreneur with more than two decades of experience designing, building, and scaling software solutions. His expertise spans product strategy, analytics, and implementation, with a proven record of transforming asset-based lending through modern, data-driven technologies. Jeff’s ventures and product leadership have helped financial institutions streamline operations and achieve sustained performance gains.
He previously co-founded a data analytics consulting services and product company that helped organizations derive critical insights and make better decisions based on data; the company had a successful acquisition in 2022.
BY TIM PETERS
Discover why 2025 marks a turning point for skilled nursing facilities in the U.S. This article reveals how shifting demographics, new reimbursement challenges, and operational pressures are transforming the industry’s nancial landscape.
Skilled nursing facilities (SNFs) have long been a cornerstone of the U.S. healthcare system, providing post-acute care, rehabilitation, and long-term support for some of the nation’s most vulnerable populations. Their financing needs are not new. What is new in 2025 is the way demographic demand, reimbursement dynamics, and operational challenges have converged, elevating the visibility of skilled nursing transactions in secured finance.
For lenders, this does not signal an untapped growth sector. Instead, it highlights that skilled nursing is among the most complex industries to underwrite. Financing in this space requires years of healthcare fluency, a depth of operational understanding, and disciplined structures that few can execute effectively.
Several forces have shaped skilled nursing for decades, but their current intensity is reshaping the financial conversation: Medicare Advantage penetration has reached a tipping point. In 2025, more than 54 percent of Medicare beneficiaries are enrolled in Medicare Advantage, according to the Kaiser Family Foundation. Payments for SNF care under these plans are typically about 25 percent lower than fee-for-service rates, based on analyses from MedPAC and Penn’s Leonard Davis Institute. Combined with more complex prior authorization requirements, this reimbursement gap is placing sustained pressure on facility margins.
Medicaid eligibility delays are compounding . Although federal law requires states to process applications within 45 to 90 days, in practice, many states take longer. Disability-related applications often exceed 110 days, according to the American Health Care Association/ National Center for Assisted Living (AHCA/NCAL). During this “Medicaid pending” period, facilities provide care without reimbursement, building receivable balances that can distort cash flow. Even a 10 percent Medicaid pending rate can represent hundreds of thousands of dollars in delayed revenue each month.
Operating costs remain elevated. Staffing shortages continue in many markets, driving reliance on contract labor. Wages have risen faster than reimbursement adjustments, eroding margins even as the Centers for Medicare & Medicaid Services announced a 4.2 percent increase in Medicare Part A payments for fiscal year 2025.
Managed care has further infiltrated state Medicaid programs , creating an environment of lower reimbursement rates, increased denials, stricter pre-authorization requirements, and extended payment timelines. AHCA/ NCAL reports that these trends are leading to higher days
accounts receivable outstanding across much of the sector.
Each of these factors has long been familiar to SNF operators. What makes 2025 notable is the way they are occurring simultaneously, creating structural volatility that financing partners must evaluate with precision.
SNFs are not new to secured finance. Receivables-backed facilities have supported operators for decades. But in 2025, more transactions are surfacing in portfolios and market conversations. This visibility is not because SNFs suddenly discovered secured lending, but because capital requirements are growing under the weight of reimbursement complexity and demographic demand.
Liquidity facilities are being sought to cover payroll and vendor costs as reimbursements stretch months beyond service delivery. Ownership transitions are creating interim financing needs during regulatory approval periods. Nonprofit and community-based operators, historically reliant on local support, are increasingly turning to private credit as reimbursement delays strain operating budgets.
The result is a steady flow of transactions that reflects systemic pressures, not opportunistic activity.
For secured lenders, the presence of receivables is not enough. In skilled nursing, the quality of collateral is inseparable from revenue cycle management (RCM). Denial trends, payer concentration, and eligibility processes determine whether receivables convert into cash or stall in administrative cycles.
Denials are rising. The U.S. Office of Inspector General has reported that 13 percent of prior authorizations are improperly denied. Appeals succeed in more than 80 percent of cases, but only after weeks or months of delay.
Payment-to-cost ratios are misaligned. MedPAC data shows that Medicaid reimburses SNFs at an average of $198 per diem, against an average cost of $253, covering just 82 percent of expenses.
Payer concentration increases risk. In states where Medicaid managed care or Medicare Advantage dominates, operators may face reimbursement shortfalls across a majority of their census.
These realities mean that collateral evaluation must extend beyond aging schedules. Field examinations now probe billing accuracy, denial management systems, and documentation practices. Receivables are only as strong as the operational infrastructure behind them.
The visibility of SNF financings in 2025 may tempt new entrants to consider the sector, but this is a space where a lack of specialization can create significant missteps.
Transactions demand more than knowledge of secured lending mechanics. They require years of immersion in healthcare, familiarity with state-level Medicaid variability, and an ability to interpret operational signals that are invisible in financial statements alone. Advance rates, covenants, and eligibility definitions must be tailored to reflect payer dynamics. Controls such as lockbox structures and conservative valuation are not optional; they are safeguards aligned with the cadence of reimbursement.
For secured lenders with healthcare depth, skilled nursing transactions can be structured responsibly. For those without it, the risks of mispricing and operational surprises are considerable.
The demographic trends underpinning skilled nursing are not slowing. According to the U.S. Census Bureau and the Population Reference Bureau, the population aged 65 and older is projected to increase by nearly 50 percent between 2022 and 2050, reaching close to 95 million people. Growth is even more pronounced among those aged 85 and older, the group most likely to require skilled nursing, whose numbers are expected to nearly triple over the same period. At the same time, the Kaiser Family Foundation projects Medicare Advantage enrollment will surpass 60 percent of beneficiaries within the next decade, while state Medicaid programs continue to expand managed care participation.
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Financing Skilled Nursing Requires Expertise: Skilled nursing finance is highly complex and demands deep healthcare knowledge.
Reimbursement and Cost Pressures Intensify: Medicare Advantage, Medicaid delays, and staffing costs put heavy strain on margins.
Receivables Depend on RCM Strength: Receivables are risky—quality depends on revenue cycle management and denial handling.
Rising Transactions Reflect Systemic Stress: More financing needs stem from demographic and reimbursement pressures, not sector growth.
Specialization Is Critical for Lenders: Only experienced healthcare lenders can navigate increasing risks in skilled nursing finance.
secured finance. The question is not whether capital will be needed, but who will provide it responsibly.
This trajectory ensures that skilled nursing will remain central to the healthcare system and increasingly visible in secured finance. The question is not whether capital will be needed, but who will provide it responsibly.
Skilled nursing is not a new industry. It has been a critical part of American healthcare for decades, serving millions of residents with complex care needs. What makes 2025 different is that the financial realities shaping this sector, demographic demand, reimbursement compression, and operational pressures, are bringing it into sharper view for secured finance.
In that sense, skilled nursing is “emerging” not because it suddenly exists, but because systemic forces have pushed its financing needs to the forefront. For secured lenders, this does not create an open opportunity. It creates a proving ground where only those with years of healthcare expertise and disciplined underwriting can responsibly participate.
This trajectory ensures that skilled nursing will remain central to the healthcare system and increasingly visible in
Skilled nursing is both established and newly visible. That tension is what defines its place in secured finance today, and why the sector is testing the depth of industry specialization more than ever.
Tim Peters is president/head of eCapital’s ABL Group. As an over 20+ year veteran in specialty finance, he is uniquely qualified to oversee the experienced team that originates, manages and monitors eCapital Healthcare portfolios and market strategy.
Tim’s background includes impressive managerial and entrepreneurial experience and he has been consistently active over his career in trade groups such as the Secured Finance Network, Turnaround Management Association, and American Bankruptcy Institute. Prior to joining eCapital Healthcare, Tim was the Founding Principal of Lakeside Capital Advisors LLC and Principal at CardinalPointe Capital Group LLC, which owned and managed multiple finance companies in the healthcare, automobile, and hospitality industries.
Tim holds a Bachelor of Arts degree from Bowling Green State University.
Sources used in the article
• Kaiser Family Foundation (KFF), Medicare Advantage Enrollment Update and Key Trends, 2025
• Kaiser Family Foundation (KFF), Medicare Advantage Payments to Increase Again, 2025
• Centers for Medicare & Medicaid Services (CMS), SNF Payment Updates, FY 2025
• Medicare Payment Advisory Commission (MedPAC), Report to Congress: Medicare Payment Policy — Skilled Nursing Facility Services, 2025
• American Health Care Association / National Center for Assisted Living (AHCA/NCAL), Medicaid Pending Report, 2025
• American Health Care Association / National Center for Assisted Living (AHCA/NCAL), Managed Care Impacts on Medicaid Reimbursements, 2025
• U.S. Office of Inspector General (OIG), Prior Authorization Denials in Managed Care, 2022 (cited in GAO oversight, 2025)
• U.S. Government Accountability Office (GAO), Medicare Advantage Oversight and Denials, 2025
• U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation (ASPE), Assessing Medicaid Payment Rates and Nursing Facility Costs, 2024
• Penn Leonard Davis Institute of Health Economics (Penn LDI), Medicare Payment Policy for Post-Acute Care in Nursing Homes, 2023
• Population Reference Bureau (PRB), Fact Sheet: Aging in the United States, 2024
• U.S. Census Bureau, Older Adults Outnumber Children in 11 States, Nearly Half of U.S. Counties, 2025
BY MICHELE OCEJO
Rob Meyers, president of Republic Business Credit, re ects on his year as SFNet president, highlighting member engagement, successful events, and the growth of the secured nance ecosystem.
Tell us what you’re most proud of from the past year as president.
It’s been an honor and a privilege to be the president of the Secured Finance Network. The engagement, speaking and meeting opportunities across our community are personally rewarding and a lot of fun. I am also grateful to have experienced this a little earlier in my career than some folks get this opportunity.
While I was the youngest president in our history, I have no doubt, with the way our industry’s going, that someone else will take the title from me in the not-too-distant future, and that connects to one thing I am most proud of: the engagement of our members and volunteers. We have an Executive Committee and Management Committee that are truly representative of our entire industry and, since 2016, with term limits across those roles, it enables more people to get engaged and, more importantly it increases our impact across the secured finance ecosystem.
Another thing I am proud of is the robust success of our events. Our 80th Annual Convention in Houston was a smashing success. It was one of our most impactful and sizeable conventions in a decade. Our Asset-Based Capital Conference in Las Vegas had record attendance, continuing to show not only that there’s a big appetite for assetbased lending, but, more importantly, we’re broadening its reach across private credit. We held the Emerging Leaders Conference in Boston for the first time with over 70 percent of attendees being first-time attendees. We’ve hosted the conference in Atlanta, Chicago, and Florida, and I can’t wait to see where we’re going to do it next year.
Broadening our reach to people in their 40s, 30s and 20s has been a real strength of our organization for the last ten years. The SFNet Women in Secured Finance Conference in New York received its highest net promoter score ever. And, to be clear, I had nothing to do with that, but that’s what makes it so fun to be president: you get to learn about and enjoy the successes of so many amazing people in our industry. In our Independent Finance Roundtable this year, we had the current president of the Kansas City Fed, and if I could go back to April, I might have a few more questions to ask him in hindsight.
We just held our 2nd Supply Chain Conference, which was well attended and received great feedback from a growing part of our community.
We have thousands of volunteers across our different national and local chapter committees that drive our engagement at record levels, and it just shows you not only is the trade association doing well, our member companies are doing well, and the market is doing well, and our members see a real purpose and value. And so much of that I had nothing to do with, but it’s so fun to witness the successes of others.
At Republic, I believe my job is to create an environment and an opportunity for people to be successful. And I feel, over
my last ten years of involvement, in particular with the national side of the Secured Finance Network and the chapter before that, it’s just been really fun to champion the great ideas of our volunteers.
A lot of credit goes to Rich Gumbrecht and his team, who have enabled us to accelerate our future investments following the success of our Annual Convention and the ABCC in Vegas. It’s all part of a five-year strategic plan we kicked off last year under Barry Bobrow’s leadership, focused on becoming the voice and the central hub of the secured finance ecosystem.
We see that ecosystem as a $5-trillion market, with assetbased lending and factoring making up close to $1 trillion, equipment finance and leasing another $1.5 trillion, and supply chain finance representing another large part. So, when you look across our membership, we’re actively involved in about $3 trillion of that $5-trillion space.
Our goal is to keep adding value—not just for our current members, but for future members too. That’s why we launched the Alliance Partnership Program, working more closely with industry associations that serve asset-based lending clients well, such as The American Bakers Association and the Distilled Spirits Council of the United States.
Additionally, we launched a project specifically embracing private credit, while showing the value of our education and certification programs. Another big highlight that drew a lot of people, the Secured Finance Network held a webinar featuring Ian Fredericks from Hilco and Alister Bazaz of Bank of America, within days of “Liberation Day,” talking about the impact of tariffs and what that might do to inventory valuations.
As for challenges, the tariffs issue wasn’t expected to be part of our editorial calendar this year, but our association is agile and innovative. And we strive to have the best, brightest and most talented people on our Executive Committee who have the time to give, of course. We continue to bring in new ideas, and it allows us to react and, more importantly, add value for our members, which is really all this is about.
All of our members have a choice, and as our numbers continue to increase it’s great to see the corresponding increase in engagement. It tells us that they’re choosing the Secured Finance Network, and they’re trusting us to be the voice of the industry.
As an industry, AI is equally a challenge as it is a great opportunity for lenders. I am excited to see it move beyond funny pictures in 2026. SFNet hosted a successful workshop on AI applications in September, which is just another example of how we are helping members in this changing world.
What surprised you about being president?
How fast 12 months goes, but equally how quickly the last ten years that I’ve been involved have flown by. It’s interesting how my perspective has shifted from “What’s Next” to “How can we enjoy this moment” during my volunteering.
Over the past ten years, one of the most rewarding parts of being involved with the Secured Finance Network has been the relationships I’ve built—many of which wouldn’t have happened otherwise. Barry Bobrow, my predecessor and former SFNet president, and I come from very different corners of the industry—he’s known for large syndications, while I’ve focused on the lower middle market. Without SFNet, we likely never would’ve connected. The same goes for Laura Jakubowski from Goldberg Kohn, Guelay Mese at BNP Paribas, and Laura Glass from Bank of America, who did incredible work.
When I first joined, I got to learn from leaders like Gail Bernstein, Peter York, Andrea Petro, David Grende, and Jeff Goldrich. These conversations continue to provide me with new perspectives and ideas I wouldn’t have encountered otherwise. So, yes, one of the biggest surprises has been how quickly time has flown—but the most meaningful part has been the people met along the journey.
These relationships inspired me to get involved in SFNet’s mentoring program. So many professionals generously answered my questions—probably more than they expected— and I’m grateful to pay that forward. This fall marks my fifth mentorship class, and I’m excited to learn from someone with a less hardened perspective. They see the world differently, having grown up with AI in the classroom—something I never experienced. I learn just as much from my mentees as they do from me, and I’m eager to see where these conversations lead next.
What advice would you offer to emerging leaders in the industry?
I think people’s titles and their experience can sometimes be intimidating. And in my experience in this industry, if you ask, the vast majority, if not all, will grab a cup of coffee with you. They’ll arrange a 30-minute phone call with you. I think my number one piece of advice is to ask. And if someone gives you some homework or something to do, don’t show up to the meeting cold. Have a few questions prepared. Do some research on them on LinkedIn. Maybe read some articles they wrote in The Secured Lender. I think if you ask, you’ll be amazed by the rewards you get. And then, if you have the time and you have the executive sponsorship, get further involved in SFNet.
Do you have any advice for incoming president Betty Hernandez?
First, don’t listen to anything I said. Chart your own course. Betty is an incredibly capable, wonderful person who’s been doing this a long time through a lot of different roles. And I don’t think Betty needs any advice from me, but if she forced me to say something, I would say enjoy it, listen, and when ideas come up, let’s take a chance. Over the last ten years, we have needed to broaden our reach to new members. We must continue to broaden our reach to women in secured finance, emerging leaders, across the secured finance ecosystem. And whether it’s private credit or through our alliance partnerships, or through our public relations team that we’ve brought on, don’t retreat,
but keep pressing forward.
I think we’re in really great hands and better, steady hands with Betty in charge, leading us forward into next year.
Is there anything you want to add?
What I would say is, while this interview is about a president, I’ve said it a few times—so much of our success has had nothing to do with me, and so much of our future success will have nothing to do with me.
Whether it’s our volunteers or the employees of the Secured Finance Network—they don’t always get to be on stage, they don’t get the limelight—but it’s an incredible team of people building and running our association for the future.
My advice to everyone: when you come across an SFNet employee or one of our volunteers, just say thank you.
So, my final thought would be just that: thank you to those who take the time to serve. And hopefully, you can get involved too. Maybe one day you’ll be one of our volunteers—or even the next president of our trade association. And hey, hopefully someone reading this will take away the “youngest president” title from me.
In addition to thanking our volunteers and the SFNet staff, I want to thank all the past presidents over the last 80 years— those who’ve charted our course and built the foundation that allows us to grow into the future. So, thank you to all my predecessors for laying that strong groundwork.
Also, on the personal side: When I first became chair of the Emerging Leaders Committee in 2016, I wasn’t married, that thankfully changed in 2017 (hopefully my wife agrees), followed by our first son in 2019 and now we luckily have three wonderful boys.
So, another thought I’d leave people with: it might seem daunting or intimidating to join the SFNet Executive Committee or become president of this trade association, but the truth is, throughout this time, I’ve only continued to add responsibilities—to my day job and to my incredible family.
In my interview last year, I mentioned one of my favorite parts of the day: walking my kids to school. And even throughout my SFNet presidency—with all the travel and commitments—we still walk our kids to school every day. That’s something I’ve held onto as we all find those moments of clarity and focus in our lives.
Michele Ocejo is SFNet director of communications and editor-in-chief of The Secured Lender.
BY KYLE SHONAK
Kyle Shonak uncovers the key factors that prompted Gordon Brothers’ groundbreaking strategies and highlights how these innovations can empower lenders to thrive in a competitive landscape. Get ready to transform your lending approach with insights from Gordon Brothers’ success story.
Over recent years, the applications and perception of assetbased lending (ABL) have transformed. Once viewed as a financing option primarily used by distressed companies, those facing bankruptcy, or borrowers unable to meet cash flow requirements, ABL has evolved into a mainstream financing tool and is now recognized as a flexible and strategic solution for asset-rich companies.
Borrowers increasingly appreciate the flexibility that ABL offers, such as fewer covenant restrictions and operational advantages, particularly during periods of economic uncertainty. While historically popular in retail and assetheavy industries, its use has expanded across a broader range of sectors, as hard assets are increasingly seen as powerful instruments for unlocking the value of their assets to support working capital, fuel growth and pursue mergers and acquisitions.
This evolution has coincided with a shift toward private credit. As ABL becomes more common in private equity, especially among firms seeking increased leverage and flexibility, borrowers now view it as a viable alternative to traditional bank financing. At the same time, regulatory
pressures have made banks more risk-averse, pushing traditional funding into the private credit space. The result is a narrowing pricing gap between bank-originated ABL and private credit ABL. Additionally, the rise in private investor capital has introduced new ways to deploy funds with targeted risk-reward profiles, and ABL offers attractive, risk-adjusted returns.
Driving this assetbased lending evolution is flexibility. While ABL products increase flexibility for borrowers, there is still a gap in traditional capital structures.
Traditional FILO facilities have served the market well for decades, but in certain situations, their higher cost and rigid prepayment terms can limit effectiveness, creating an allor-nothing scenario for borrowers needing term debt over extended periods. Many borrowers have sought more adaptable capital solutions to address sporadic liquidity needs without the long-term commitment and cost burden of conventional FILOs.
Through engagement with our clients and listening to their needs, we recognized a gap in traditional capital structures. While they may be appropriate for some instances, first-in, last-out (FILO) lending facilities, can lack the flexibility needed for borrowers with intermittent liquidity needs. In response, we’ve evolved our offerings to better serve these dynamic requirements and developed a capital solution to address sporadic liquidity needs without the long-term commitment and cost burden of conventional FILOs.
Gordon Brothers’ new revolving FILO structure, RILO SM (Revolving-In, Last-Out), is based on an incremental advance rate, allowing borrowers to draw and repay funds flexibly. Rather than pairing a fully funded FILO with a traditional revolver, this structure offers an alternative that aligns financing costs with actual liquidity needs, providing borrowers with greater flexibility by enabling deeper access to asset value precisely when liquidity is needed most.
When liquidity demands are intermittent, RILO provides a lower-cost alternative to traditional FILOs, empowering firstlien lenders to better serve their borrowers while avoiding the constraints and expense of legacy FILO structures. In essence, RILO combines the payment flexibility of a traditional revolving credit facility with the additional liquidity a FILO provides. With a RILO, borrowers only pay when they draw, and it doesn’t alter their experience with the agent. Instead, it simply increases availability while being managed behind the scenes. Co-lenders also benefit from ongoing access to Gordon Brothers’ deep asset expertise, strengthening their position throughout the loan lifecycle.
As we continue to evolve our suite of loan products, our focus remains on helping clients manage risk and strengthen relationships through less intrusive, cost-effective capital solutions. With RILO, we can dynamically adjust the level of risk mitigation throughout the loan lifecycle, making it an ideal product for companies experiencing growth, seasonality or transformation.
As the evolution of ABL continues, today’s borrowers expect lenders to offer a large menu of options customized to suit the company’s specific needs to maximize liquidity and provide support to clients.
RILO represents one such option to deliver lower-cost liquidity without the burden of permanent, long-term capital. For existing borrowers, RILO enhances liquidity, delivers a single global facility with a blended interest rate. Once implemented, RILO operates seamlessly alongside the existing line.
Since launching the RILO product, Gordon Brothers has received strong market feedback from clients who value its ability to deliver lower-cost liquidity without the burden of permanent, long-term capital. Borrowers appreciate its flexibility and optionality, as well as the credit enhancement it provides to senior lending partners.
In the years to come, new financing options are likely to continue this trajectory: finding creative opportunities to leverage assets and maximize flexibility. At Gordon Brothers, we are committed to continuing to expand our product offering and develop new capital strategies that respond to the evolving needs of borrowers at every stage of the business lifecycle and deliver flexible, asset-based capital solutions that support longterm success.
Kyle C. Shonak is chief transaction officer, North America at Gordon Brothers. Kyle leads the region’s multi-faceted transaction strategy and partners across the firm to structure and oversee engagements that leverage full asset capabilities, unlock new opportunities and fuel growth.
Kyle has nearly 25 years’ experience managing complex growth and winddown transactions partnering with management teams, private equity sponsors, strategic buyers and asset-based lenders to provide expertise and additional capital in special situations. Additionally, he has extensive experience providing customized solutions through effective structuring, underwriting, rehabilitation and asset monetization.
Prior to joining Gordon Brothers, Kyle was a managing director at Pathlight Capital where he managed all aspects of the firm’s commercial lending business and was a member of the investment committee. Previously, he was president of Salus Capital Partners and spearheaded the company’s winddown and portfolio restructuring. Before that, Kyle was vice president of special assets for Textron Financial where he developed legal and business strategies in Chapter 11 bankruptcy. Kyle has a Bachelor of Science in Finance from the University of Massachusetts Amherst. He is a member of the American Bankruptcy Institute, Turnaround Management Association and Secured Finance Network. Kyle is based in Boston.
BY EILEEN WUBBE
This column highlights the hard work and dedication of SFNet’s Committee volunteers. Here we speak with Kurt Marsden, group head, Wells Fargo Capital Finance, and chair of SFNet’s Convention Planning Committee.
KURT MARSDEN
Wells Fargo Capital Finance
Please provide our readers with your career background at Wells Fargo.
I began my career at Foothill Capital Corporation through their analyst training program, where I gained experience in collateral analysis, portfolio management, and field examinations. This foundation proved instrumental as I advanced within the company. During this time, Foothill underwent significant changes, including its acquisition by Norwest Bank and the subsequent merger of Norwest Bank with Wells Fargo. These transitions led to our rebranding from Foothill Capital Corporation to Wells Fargo Foothill, and finally to Wells Fargo Capital Finance. Throughout this journey, I had the opportunity to integrate several businesses into our platform and establish and manage our software recurring revenue lending practice. As our business expanded, so did my leadership opportunities, culminating in my current role where I manage Wells Fargo’s AssetBased Lending and Lender Finance businesses. I am fortunate to work with an exceptional team across the United States, Canada, and the United Kingdom.
How did you become involved in SFNet and where have you volunteered over the years?
Wells Fargo Capital Finance has consistently been an active member of SFNet, both nationally and locally, which has allowed me to be engaged with the organization throughout my career. Early on, I participated in various training programs offered by SFNet, focusing on field examinations and legal documentation. Over the years, I have attended numerous national conventions, often serving as a
panel speaker. I also had the opportunity to be an inaugural member and serve on the Diversity Committee for several years. In 2024, I joined the Houston convention committee to assist in planning and to prepare for leading the Los Angeles Convention planning committee. In my current convention leadership role, I also participate in the SFNet’s Executive Committee for this fiscal year.
What does SFNet’s Convention Planning Committee do?
The SFNet’s Convention Planning Committee plays a pivotal role in orchestrating the annual convention. This committee is responsible for working in coordination with the fantastic team at SFNet to organize and plan all aspects of the event, from logistics and programming to marketing and attendee engagement. The committee efforts ensure that the convention runs smoothly and provides valuable opportunities for networking, learning, and professional growth for the participants.
How has the planning experience been for this year’s 81st Annual Convention in your home state of California?
The experience has been incredibly rewarding due to the tremendous enthusiasm and dedication of our Convention Committee. The commitment to making this convention a success for all attendees is truly inspiring. We have seen great participation at both the local and national levels, encompassing all our member groups. Many committee members have been involved in previous conventions, and it’s been a pleasure to collaborate with them as we explore new ideas and fine-tune successful concepts from past events. Having spent my entire life in Los Angeles, like many other committee members, it is particularly special to organize an event that highlights our vibrant city.
What are some of your biggest achievements/wins in being chair of this Committee?
The most significant win has been the enthusiasm and dedication of the committee members, coupled with the excellent work carried out by the SFNet team. With these two groups working in harmony, we have made steady and consistent progress in preparing for this event throughout the calendar year. I have also appreciated the committee members’ openness to exploring new ideas related to our sessions and panel discussions.
For someone who may want to join SFNet’s Convention Planning Committee next year, how would you describe it to them?
Being a part of this committee allows you to contribute to the planning and execution of one of the industry’s most anticipated events. You will collaborate with industry leaders, enhance your professional network, and develop valuable skills in event planning and organization. If you’re passionate about making a difference and being at the forefront of industry developments, this is a great committee to join.
How often does this Committee typically meet?
Our focus has been on making steady progress, so we have been meeting every two weeks for the last several months and I expect that we will potentially scale to weekly meetings as we get closer to the event.
Kurt R. Marsden, Wells Fargo Capital Finance, Chairperson
Jason Anish, Austin Financial Services, Inc.
Sydnee Breuer, Rosenthal Capital Group
Karen Bubrowski, Hilco Global
Lin Chua, InterNex Capital
Jonathan N. Helfat, Otterbourg P.C.
Carrie Jenkins, Financial Consultant
James A. Marasco, Gibraltar Business Capital, LLC
Kathleen Parker, Hyper Valuation Services, LLC
Michael Anthony Ragano, Novo Advisors
Oscar Alexander Rombola
Tim Stute, Hovde Group, LLC
For someone who has never attended the convention, what words of encouragement would you offer to attend this year’s event? How does this year’s conference differ from others?
For those who have never attended the convention, I would highly encourage you to join us this year. The event provides a unique opportunity to connect with industry leaders, gain valuable insights, and participate in compelling discussions. This year’s conference promises to be exceptional, with a focus on innovation and resilience in these volatile times, and it will feature a diverse lineup of speakers and sessions tailored to current industry trends. The networking opportunities alone are always the highlight for many, affording opportunities to build relationships with people across the secured lending community. It is just such a great opportunity to expand your knowledge, learn about developing trends, grow professional networks, and have some fun while doing it.
When you are not busy at SFNet or Wells Fargo, what can you be found doing?
I am active in my community and currently serve as the Chair of Inclusion Matters by Shane’s Inspiration, which is a non-profit that focuses on fostering greater inclusion for children with disabilities and through education programs and universally accessible playgrounds that they design and build. Outside of my charitable work, I enjoy being outdoors and exercising, with my long-term focus being on swimming. I’ve also recently been working to improve my tennis game. I certainly enjoy hanging out with my wife and two adult children and we like to travel together whenever we can.
Eileen Wubbe is senior editor of The Secured Lender.
Jason Anish, Austin Financial Services, Inc.
What do you enjoy about being on SFNet’s Convention Planning Committee?
It’s rewarding to contribute ideas that help make this year’s conference engaging, interactive, and inclusive for all attendees. With over 30 years of experience in the finance industry, I always value the opportunity to meet new people, reconnect with colleagues, and engage in meaningful conversations that spark partnerships, foster deal collaboration, and help shape the future of our industry. Serving on the Convention Planning Committee allows me to give back to the finance community in a way that provides real value to those attending this conference and supports the continued growth and innovation of our field.
How does being involved in an SFNet Committee help you in your job?
Serving on the SFNet Board and the Convention Planning Committee is an opportunity to foster connections that often extend beyond the traditional scope of business development. Collaborating with peers from across the country helps broaden relationships, creating more opportunities for everyone involved. It also provides meaningful insight into industry trends and developments, keeping me informed about changes shaping the broader finance community.
What are you most looking forward to seeing come to fruition at this year’s convention in Los Angeles that you helped plan?
While I’m honored to be chairing two panels and am speaking on the “View from the Top: Bank ABL, Factoring and Independent ABL” panel, I’m especially excited to attend the “Harnessing Technology & AI in Finance” session on Thursday afternoon. With the rapid advancement of artificial intelligence and other emerging technologies, this topic is more relevant than ever. I’m looking forward to gaining insight into how these innovations are positively transforming the finance and banking sectors, while also learning about the cybersecurity safeguards needed to protect them. As our industry continues to evolve, the growing role of AI and cyber solutions will have a profound impact on the global finance landscape. It will be interesting to hear the perspectives of an expert on where the technology stands today and how continued innovation will shape our community in the years ahead.
What do you enjoy about being on SFNet’s Convention Planning Committee?
I enjoy meeting and working with others in our industry that I may not have otherwise met. It’s also nice to be in a cooperative environment with competitors. And for those on the committee that I already know, it’s great to have another touch point. We are all working together to achieve a common goal.
How does being involved on an SFNet Committee help you in your job?
Exposure is always a good thing. From meeting and working together, we learn more about each other and our specific areas and can refer business to each other.
What are you most looking forward to seeing come to fruition at this year’s convention in Los Angeles that you helped plan?
I’m looking forward to seeing the panels since so much time goes into working on topics that are of interest and relevant and then finding panelists who add value and are experts on that topic. The convention is always a great opportunity to renew relationships and meet new people in our industry and, having worked on the planning committee, I look forward to seeing people expand their networks and enjoy themselves, all while finding the programming useful and worthwhile.
How does being involved in an SFNet Committee help you in your job?
As a service provider offering M&A advisory and capital-raising services to the asset-based lending and factoring sectors, I need to be up to date on all things going on with SFNet. That could include how the association is advocating in Washington to help with possible changes in the law for finance companies. Or even just being aware of logistical items such as knowing where the annual convention is going to be over the next few years or where IFR (Independent Finance Roundtable) will be held. I also serve on SFNet’s Executive Committee where I chair the Membership Committee. Staying involved in these ways gives me much better visibility as to what is going on in this industry.
What are you most looking forward to seeing come to fruition at this year’s convention in Los Angeles that you helped plan?
My role for this year’s convention is really focused on the new Capital Connections event, which is debuting on the first day of the conference in Los Angeles. This will be an opportunity for independent finance companies to go through a “speed dating” set up with lenders and investors who focus on providing senior debt, subordinated debt and equity capital to commercial finance companies. Matching up finance companies with providers of capital or buyers of their business is what we do every day, so assisting with establishing some new relationships for convention attendees will be fulfilling for me.
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